FelCor Lodging Trust Wipes Out 2010 Maturities with New $212M Loan
- May 05, 2010
May 5, 2010
By Barbra Murray, Contributing Editor
Hotel REIT FelCor Lodging Trust Inc. has just gotten its hands on $212 million in financing for a nine-property hotel portfolio. The transaction, orchestrated on the Irving-Tex.-based company’s behalf by Cushman & Wakefield Sonnenblick Goldman’s Global Hospitality Group (CWSG), FelCor has removed all debt maturities from its books for 2010.
The financing comes in the form of a floating-rate loan bearing interest at LIBOR plus 5.1% with a maturity date of 2015. “With this financing, we resolved all of our remaining 2010 debt maturities on terms that are significantly more favorable than the refinanced debt,” FelCor noted in a filing with the Securities and Exchange Commission. The hotels involved in the deal include five Embassy Suites and four Sheraton hotels, which, as high-quality assets in diverse locations, helped attract a slew of interested lenders, according to CWSG. FelCor’s sponsorship also served as bait, and the timing certainly helped, too.
“FelCor had a bout 60 lenders looking to provide loans, and that says a lot about the improvement in capital markets over the last six to eight months,” Smedes Rose, Senior Lodging Analyst with Keefe, Bruyette & Woods, told CPE. “A year ago, it would have been hard to get lenders to look at this deal.”
FelCor has certainly taken advantage of the loosening of the credit crunch. “They’ve been very successful at addressing debt maturities,” he noted. “It’s been very well executed on their part.” Presently, FelCor owns interests in 84 upper-upscale hotels and resorts in 23 states and Canada.